Florida Senate - 2022 COMMITTEE AMENDMENT
Bill No. CS for SB 1430
Ì729540#Î729540
LEGISLATIVE ACTION
Senate . House
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Appropriations Subcommittee on Agriculture, Environment, and
General Government (Burgess) recommended the following:
1 Senate Amendment (with title amendment)
2
3 Delete lines 110 - 195
4 and insert:
5 expected to be recouped. If an insurer elects not to recoup, the
6 amount recorded as an asset must be reduced to zero.
7 2. Unless an insurer elects not to recoup, assessments
8 levied under subparagraph (f)2. are paid after policy surcharges
9 are collected so that the recognition of assets is based on
10 actual premium written offset by the obligation to the
11 association. If an insurer elects not to recoup, no asset shall
12 be recorded.
13 (f)1. The association, office, and insurers remitting
14 assessments pursuant to paragraph (a) or paragraph (e) must
15 comply with the following:
16 a. In the order levying an assessment, the office shall
17 specify the actual percentage amount to be advanced to the
18 association and thereafter collected uniformly from all the
19 policyholders of insurers subject to the assessment and the date
20 on which the assessment year begins, which may not begin before
21 90 days after the association board certifies such an
22 assessment.
23 b. Insurers shall make an initial payment to the
24 association before the beginning of the assessment year on or
25 before the date specified in the order of the office. Each
26 insurer shall have at least 30 days’ written notice as to the
27 date on which the initial assessment payment is due and payable.
28 The association may request that the order issued by the office
29 authorize insurers to remit the advance payments in four
30 quarterly installments throughout the assessment year.
31 c. Insurers that have written insurance in the calendar
32 year before the year in which the assessment is certified by the
33 board shall make payments an initial payment based on the direct
34 written premium in this state for the classes protected by the
35 account from the previous calendar year as set forth in the
36 insurer’s annual statement, multiplied by the uniform percentage
37 of premium specified in the order issued by the office. Insurers
38 that have not written insurance in the previous calendar year in
39 any of the lines under the account which are being assessed, but
40 which are writing insurance as of, or after, the date the board
41 certifies the assessment to the office, shall pay an amount
42 based on a good faith estimate of the amount of direct written
43 premium anticipated to be written in the subject lines of
44 business for the assessment year, multiplied by the uniform
45 percentage of premium specified in the order issued by the
46 office.
47 d. Insurers shall file one or more a reconciliation reports
48 report with the association which indicate indicates the amount
49 of the initial payment to the association before the assessment
50 year, whether such amount was based on direct written premium
51 contained in a previous calendar year annual statement or a good
52 faith projection, the amount actually collected during the
53 assessment year, and such other information contained on a form
54 and schedule adopted by the association and provided to the
55 insurers in advance. If the insurer collected from policyholders
56 more surcharges than the amount initially paid, the insurer
57 shall pay the excess amount to the association. If the insurer
58 collected surcharges from policyholders in an amount that which
59 is less than the amount initially paid to the association, the
60 association shall credit the insurer that amount against future
61 assessments. Such payment reconciliation report, and any payment
62 of excess amounts collected from policyholders, shall be
63 completed and remitted to the association within 90 days after
64 the end of the assessment year. The association shall send a
65 final reconciliation report on all insurers to the office within
66 120 days after each assessment year.
67 e. Insurers remitting reconciliation reports under this
68 paragraph to the association are subject to s. 626.9541(1)(e).
69 2. For assessments required under paragraph (a) or
70 paragraph (e), the association may use a quarterly installment
71 method instead of the method described in sub-subparagraphs 1.b.
72 and c. or in combination thereof based on the association’s
73 projected cash flow. If the association projects that it has
74 cash on hand for the payment of anticipated claims in the
75 applicable account for at least 6 months, the board may make an
76 estimate of the assessment needed and may recommend to the
77 office the assessment percentage that may be collected as a
78 quarterly assessment. The office may, in the order levying the
79 assessment on insurers, specify that the assessment is due and
80 payable quarterly as the funds are collected from insureds
81 throughout the assessment year, in which case the assessment
82 shall be a uniform percentage of premium collected during the
83 assessment year and shall be collected from all policyholders
84 with policies in the classes protected by the account. All
85 insurers shall collect the assessment without regard to whether
86 the insurers reported premium in the year preceding the
87 assessment. Insurers are not required to advance funds if the
88 association and the office elect to use the quarterly
89 installment option. All funds collected shall be retained by the
90 association for the payment of current or future claims. This
91 subparagraph does not alter the obligation of an insurer to
92 remit assessments levied pursuant to this subsection to the
93 association. Notwithstanding this subparagraph, an insurer may
94 elect not to collect from policyholders, in which case such
95 insurer must make quarterly payments to the association equal to
96 the amount of premium written in the previous quarter for
97 policies in the classes protected by the account multiplied by
98 the uniform percentage of premium set forth in the order levying
99 the assessment. Insurers shall file one or more reconciliation
100
101 ================= T I T L E A M E N D M E N T ================
102 And the title is amended as follows:
103 Delete lines 16 - 25
104 and insert:
105 recoup advances; specifying requirements for insurers
106 electing not to recoup; revising a requirement for
107 information regarding assessment percentages which
108 must be specified by the Office of Insurance
109 Regulation in orders levying assessments; authorizing
110 the association to request that orders levying
111 assessments issued by the office authorize a certain
112 installment frequency for the remittance of advance
113 payments by insurers; revising the requirement that
114 certain insurers make payments, rather than initial
115 payments, on a certain basis; requiring insurers to
116 make quarterly payments to association under certain
117 circumstances; revising insurer